Respuesta :
Answer:
Option a is correct.
The aggregate income is $4,400
Explanation:
Aggregate income is one of the approaches used to calculate Gross Domestic Product (GDP) of a country.
Aggregate income is the sum total of income generated by individuals, businesses and government in an economy during a given period.
The income comprises of all returns given to factors of production, like interest, rent, profit and wages. It also includes all income generated by government through taxes.
To avoid double counting, transfer payment is excluded. Transfer payment refers to income given but not worked for. Example of sum income is subsidy given by the government to reduce price of goods and service.
Putting everything together, the following equation summarizes components of aggregate income.
Aggregate Income = Bi + Ci + Ri + Li+ (Gi - Tp)
Bi = Business Income (Profit), Ci = Capital Income (interest), Ri = Rental Income (Rent), Li = Labour Income, Gi = Government Income, Tp = Transfer payment.
Using the information supplied in the question, the aggregate income will be:
= $700 + $400 + $2500 + $300 ($1000-$500)
= $4,400.
A- The aggregate income of the business is $4400 which can be calculated by putting the different values given to us in the field of the Formula of Aggregate income.
The aggregate income is a summation of various sources of income for the business and it is not required to be disclosed in the annual accounts of the firm however , some firms calculate this for internal use.
- Aggregate income is calculated on the basis of addition of the various income heads of the business and subtracting the part of payments made to the government as taxes or other charges.
- The business income is profit, capital income is interests recd., compensation to employees is miscellaneous income, rent is the rental income, taxes are govt. income and transfer payments are expenses of the firm.
- Putting the values in the formula of aggregate income
[tex]Aggregate\ income = business\ income + capital\ income\ + miscellaneous\ income + house\ property\ income + ( government\ income - transfer\ payments)[/tex]
- Putting correct values to the formula we get
[tex]A= 700 + 400 + 2500 + 300 + (1000-500)[/tex]
- The final value of aggregate income obtained will be
[tex]A = 4400\[/tex]
- So the aggregate income will be $4400 after putting the given values to the formula.
Hence, the correct option is A that the aggregate income of the firm is $4400.
To know more about the aggregate income, click on the link below.
https://brainly.com/question/14786763
